Utz Brands, Inc.’s subsidiaries have entered into an agreement to acquire the assets of two third-party direct store delivery (DSD) distributors of Utz’s products, Clem Snacks, Inc. and J&D Snacks, Inc. 

Founded in 1955, Clem is a family-owned and operated distributor based in Brooklyn, New York with approximately 100 DSD routes in New York City and Long Island. J&D has been serving the Bronx, New York since 1996 with approximately 25 DSD routes.

Utz says the combined acquisition of these routes will allow the company to accelerate share gains in the salty snack category across these geographic areas. Over the past 20-plus years, Utz has collaborated with New York retailers to expand its presence and increase distribution. This has resulted in accelerated sales growth of Utz’s power brands, which include Utz, Zapp’s, On the Border Chips & Dips and others. 

With these acquisitions, Utz will increase its investment in the New York City region and provide enhanced retailer support with increased distribution facilities and sales management, higher service velocity, and an expanded route distribution system.

“We are excited to build on the solid foundation and stellar reputation that the Clem and J&D teams have built,” said Steve Liantonio, senior v.p., national sales operations. “These two key distribution partners have been representing and distributing Utz’s brands in the five boroughs of New York City and Long Island over the last 25 years, and we look forward to working closely with our independent operator network to expand and grow our expansive portfolio of brands in this vibrant and diverse market. The opportunity for growth and expansion remains robust and we are poised to drive it to new heights.”

Utz expects to use balance sheet cash and its revolving credit facility to fund the purchase price. The transaction is subject to customary closing conditions and is expected to close in the first quarter of 2022. Financial terms were not disclosed.